7520 Rate for January Stable at 2.6%

7520 Rate for January Stable at 2.6%

Summary

For purposes of determining the present value of an annuity, an interest for life or a term of years, or a remainder or a reversionary interest, the applicable federal rate under section 7520 for January 2018 is 2.6%; the same as December.

Advisors should be aware that the 7520 rate affects many charitable deductions. When calculating a deduction the current month's rate or the prior two months' rates may be used to optomize the deduction based on planning objectives.